To Train or not to Train:

Which costs more?

In talking to companies about training there are always some barrier that is preventing them from training. One of the most frequently

cited is the cost of training. The training should not be viewed as an expense but rather an investment. When we start to look at training

as an investment the amount we put into it doesn’t really matter. The new question becomes: What are we going to get back from the

investment? I have seen articles that cite research that says training will increase an individual’s productivity by 30%, or that training can

reduce turnover in a company by 35%. When thinking about getting involved in training and what the return on investment will be to your

company it can be hard to project dollar figures with these percentages.

Here is an easy way to look at it. An employee earning ten dollars an hour and wasting one hour a day through inefficiency, lack of task

knowledge, etc. is costing the company $2000 a year. If through training, an employee can learn ways to recapture that one hour that translates

into a payback to the company of $2000 a year. If ten employees go through the training and have similar benefits the return to the company

would be $20,000. (This does not include the other benefits of training such as reduced employee turnover and increased employee morale)

The typical cost of sending an employee to craft training is around $1000 a year. Using the example above, the investment made in training

tuition will provide the company with a 100% return on that investment.

The construction industry continues to grow and the average of skilled workers continues to rise. Some estimates suggest that as an industry

we will have to find 285,000 workers a year to meet the demands for new work and to replace workers that are leaving the industry.

(A lot of the people leaving are retiring. The average age of a skilled worker is 51) Training is no longer an option; it is a necessity for

companies to ensure that they remain competitive and have a skilled workforce.

If you would like more information about available training resources or how you can set-up your own training program please contact:

Jason Phelps, Director of Workforce Development

(601) 944-0421